MITRE Corporation awarded $21.3M contract for health services support by HHS CMS

Contract Overview

Contract Amount: $21,331,368 ($21.3M)

Contractor: THE Mitre Corporation

Awarding Agency: Department of Health and Human Services

Start Date: 2013-09-20

End Date: 2018-09-25

Contract Duration: 1,831 days

Daily Burn Rate: $11.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::CL::IGF CIISG MARKETPLACE STATE ENGAGEMENT AND OPERATIONS SUPPORT

Place of Performance

Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $21.3 million to THE MITRE CORPORATION for work described as: IGF::CL::IGF CIISG MARKETPLACE STATE ENGAGEMENT AND OPERATIONS SUPPORT Key points: 1. Contract awarded via full and open competition, suggesting a robust market. 2. The contract duration of 1831 days indicates a long-term need for these services. 3. Services fall under 'All Other Professional, Scientific, and Technical Services,' a broad category. 4. The contractor, MITRE Corporation, is a well-established entity in government contracting. 5. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 6. No small business set-aside was utilized, indicating the primary contractor is not a small business.

Value Assessment

Rating: good

The contract value of $21.3 million over approximately five years averages to about $4.26 million annually. Benchmarking this against similar professional, scientific, and technical services contracts is challenging due to the broad NAICS code. However, MITRE Corporation's extensive experience and its role as a federally funded research and development center (FFRDC) suggest that the pricing, while potentially higher than a smaller firm, reflects specialized expertise and a track record of performance. Further analysis would require detailed cost breakdowns and comparison to specific service delivery models.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit a bid. The number of bidders is not specified, but this method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The open competition suggests that the Centers for Medicare and Medicaid Services (CMS) sought the best value from the widest possible pool of qualified contractors.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the potential for cost savings and ensures that the government receives competitive pricing for services rendered.

Public Impact

Beneficiaries include the Centers for Medicare and Medicaid Services (CMS) and potentially the broader healthcare system through improved operations and engagement. Services delivered likely encompass a range of professional, scientific, and technical support to enhance CMS's market engagement and operational capabilities. The geographic impact is primarily focused on Maryland, where the contractor is located, but the services support federal operations. Workforce implications may involve specialized technical and analytical roles within MITRE Corporation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type introduces potential for costs to exceed initial estimates if not rigorously managed.
The broad nature of the NAICS code (541990) makes direct cost comparisons difficult without more granular service details.
Lack of specific performance metrics in the provided data makes it hard to assess the efficiency of service delivery.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
The contractor, MITRE Corporation, is a reputable organization with significant experience in government support.
The contract duration suggests a stable, long-term need for the services, implying consistent support for CMS objectives.

Sector Analysis

The contract falls under the Professional, Scientific, and Technical Services sector, specifically within 'All Other Professional, Scientific, and Technical Services' (NAICS 541990). This sector is characterized by a wide array of specialized services supporting government and private entities. MITRE Corporation, as a key player, often engages in complex technical and analytical work for federal agencies. Comparable spending benchmarks are difficult without knowing the exact nature of the 'state engagement and operations support,' but the overall federal spending on professional services is substantial, with significant portions allocated to IT, R&D, and specialized consulting.

Small Business Impact

This contract does not appear to have a small business set-aside, as indicated by 'sb': false. The prime contractor, The MITRE Corporation, is a large organization. This means that opportunities for small businesses would likely be through subcontracting if MITRE chooses to engage them. Without specific subcontracting plans or goals, the direct impact on the small business ecosystem from this particular contract is not evident, though MITRE's general practices may involve small business participation.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Health and Human Services (HHS) and its contracting officers within the Centers for Medicare and Medicaid Services (CMS). As a Cost Plus Fixed Fee contract, rigorous financial oversight and auditing are crucial to ensure costs are reasonable and allocable. The Inspector General for HHS would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract. Transparency is typically managed through contract reporting mechanisms and agency oversight processes.

Related Government Programs

Federal IT Services
Government Consulting Services
Healthcare Administration Support
Professional and Technical Services

Risk Flags

Cost Overrun Risk (CPFF)
Broad NAICS Code Ambiguity
Potential Lack of Small Business Subcontracting

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $21.3 million to THE MITRE CORPORATION. IGF::CL::IGF CIISG MARKETPLACE STATE ENGAGEMENT AND OPERATIONS SUPPORT

Who is the contractor on this award?

The obligated recipient is THE MITRE CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Medicare and Medicaid Services).

What is the total obligated amount?

The obligated amount is $21.3 million.

What is the period of performance?

Start: 2013-09-20. End: 2018-09-25.

What is MITRE Corporation's track record with the Centers for Medicare and Medicaid Services (CMS) and the Department of Health and Human Services (HHS)?

The MITRE Corporation has a long-standing relationship with various federal agencies, including HHS and CMS, often acting as a Federally Funded Research and Development Center (FFRDC). Their work typically involves providing objective analysis, research, development, and systems engineering support. Historical data indicates MITRE has been awarded numerous contracts across different agencies, focusing on areas like healthcare policy, technology modernization, and operational efficiency. Their performance is generally viewed positively, characterized by technical expertise and a commitment to public service. Specific performance metrics for this particular contract would require access to internal government evaluations, but MITRE's overall reputation suggests a reliable partner for complex government challenges.

How does the value of this contract compare to similar professional services contracts awarded by CMS?

Comparing the $21.3 million value of this contract to similar professional services contracts by CMS requires a detailed understanding of the specific services rendered under NAICS code 541990. This code is very broad, encompassing 'All Other Professional, Scientific, and Technical Services.' Contracts for IT modernization, data analytics, policy development, or program management within CMS can vary significantly in value. Given the 5-year duration, the annual average of approximately $4.26 million is substantial but not necessarily an outlier for complex support services. Without specific comparable contract details (e.g., scope of work, duration, specific services), a precise value comparison is difficult. However, MITRE's status as an FFRDC often means contracts are for highly specialized, mission-critical support, which can command higher values.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract like this one?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. In a CPFF structure, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. If the contractor's costs exceed estimates, the government bears the burden of these additional expenses, up to the contract's ceiling. This necessitates robust government oversight to monitor costs, ensure efficiency, and verify the allowability and allocability of expenses. The fixed fee, however, provides the contractor with a defined profit margin, incentivizing them to complete the work. Risks also include potential scope creep if not managed tightly and the contractor's incentive to control costs being potentially weaker compared to fixed-price contracts.

What is the expected program effectiveness or outcome based on the contract description?

The contract description, 'IGF::CL::IGF CIISG MARKETPLACE STATE ENGAGEMENT AND OPERATIONS SUPPORT,' suggests the program aims to enhance the effectiveness of the Centers for Medicare and Medicaid Services (CMS) in engaging with state entities and supporting marketplace operations. 'CIISG' likely refers to a specific CMS initiative or system. The expected outcome is improved coordination, communication, and operational efficiency between CMS and state governments regarding healthcare programs and marketplaces (like the ACA marketplace). This could translate into smoother enrollment processes, better data sharing, more effective policy implementation at the state level, and ultimately, improved access to healthcare services for beneficiaries. The success will depend on the quality of the 'engagement and operations support' provided by MITRE.

How has federal spending on 'All Other Professional, Scientific, and Technical Services' (NAICS 541990) trended in recent years?

Federal spending on NAICS code 541990, 'All Other Professional, Scientific, and Technical Services,' has generally shown an upward trend over the past decade, reflecting the government's increasing reliance on specialized external expertise. While specific figures fluctuate annually based on agency priorities and budget allocations, this category often captures a diverse range of services not easily classified elsewhere, including consulting, research, testing, and specialized technical support. Agencies like HHS, DoD, and DHS frequently utilize contractors under this code for mission-critical functions. The growth in this sector is driven by the complexity of modern government challenges, the need for agile support, and the desire to leverage specialized skills that may not be available in-house. Detailed spending data from sources like USAspending.gov would provide precise year-over-year trends.

What is the significance of the contract being a 'Delivery Order' (aw: DELIVERY ORDER)?

The designation 'DELIVERY ORDER' (aw: DELIVERY ORDER) indicates that this contract is likely a task order issued under a larger, pre-existing indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar type of multiple-award contract vehicle. IDIQ contracts allow agencies to procure supplies or services over a set period, with specific orders (delivery or task orders) being issued as needed. This approach provides flexibility for the government, allowing them to order specific quantities or services up to a certain ceiling amount. For the contractor, it signifies a commitment from the agency to utilize their services, but the exact scope and timing of work are defined by individual delivery orders. This particular order represents a specific tranche of work or a defined period of service within a broader contractual framework.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: RESEARCH AND DEVELOPMENT › N – Health R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: RFPCMS20110021

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 7515 COLSHIRE DR, MC LEAN, VA, 22102

Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $21,331,368

Exercised Options: $21,331,368

Current Obligation: $21,331,368

Actual Outlays: $139,370

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $935,940

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSM500201200008I

IDV Type: IDC

Timeline